NEW YORK, Jan 25 (Reuters) - U.S. stock futures climbed on
Friday and the S&P 500 was poised for an eighth day of gains,
its longest winning streak in eight years, buoyed by rosy
earnings from Procter & Gamble amid a backdrop of sturdy
corporate results.

The equity market was also boosted by agreement in
Washington to extend the government's borrowing power through
mid-May, encouraging signs of recovery in the global economy,
solid corporate earnings, and seasonal inflows into stocks.

Those factors helped the S&P 500 rally for a seventh day on
Thursday to a five-year peak. Still, the index struggled to
climb convincingly above 1,500, a level it surpassed briefly
Thursday for the first time since December 2007.

"We are seeing a very broad-based rally and the ingredients
are still in place" for gains to continue, said Steve Goldman,
principal at Goldman Management in Short Hills, New Jersey.
"This is the lift-off phase and it's still significant."

Procter & Gamble, the world's top household products
maker, said quarterly profit soared past expectations and raised
its sales and earnings outlook for the fiscal year. Shares were
up 2.1 pct at $71.88 in premarket trading.

S&P 500 futures rose 3.6 point and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures rose 32
points and Nasdaq 100 futures rose 9.75 points.

If the S&P 500 rises for an eighth day, it will be its
longest winning streak since late 2004, when it enjoyed a
nine-day run.

Pointing to a rotation out of bonds, U.S. 30-year Treasury
bonds traded more than a point lower in price on Friday, with
yields touching session highs at 3.10 percent.

"You have had more confidence from fund managers to provide
more allocations to equity markets," which looked more
attractive than bonds or cash, said Rick Meckler, president of
investment firm LibertyView Capital Management.

Recent company earnings have been encouraging. Thomson
Reuters data through early Thursday showed that of the 133 S&P
500 companies that have reported earnings so far, 66.9 percent
exceeded expectations, more than the 65 percent average over the
past four quarters.

Microsoft Corp reported lower quarterly profit on
Thursday as Office software sales slowed ahead of a new launch,
offsetting a solid but unspectacular start for its Windows 8
operating system and sending the company's shares down 0.8
percent in premarket trading.

Apple stepped up audits of working conditions at
major suppliers last year, discovering multiple cases of
underage workers, discrimination and wage problems. The shares,
which fell 12 percent Thursday after disappointing earnings,
edged up 0.5 percent to $452.90.

German business morale improved for a third consecutive
month in January to its highest in more than half a year,
providing further evidence that growth in Europe's largest
economy was gathering speed after contracting late last year.

Echoing a more positive tone in Europe, ECB President Mario
Draghi said on Friday he expects the euro zone economy to
recover later this year, and that financial market improvements
had not yet trickled into the general economy.